Suppose That Eight Workers Can Manufacture 70 Radios Per Day

question 382

Multiple Choice

Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day.If radios can be sold for $10 each,the value of marginal product of the ninth worker is

• A) 20 radios.
• B) 90 radios.
• C) $200.
• D) $900.

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Definitions:

Required Rate Of Return

The lowest annual return percentage that persuades individuals or companies to commit capital to a particular project or security.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term liquidity.

Tax Rate

The share of profits or income that is levied as tax on a person or a corporation.

Minimum Bid

The lowest price that a seller is willing to accept for an item being sold at auction.